Correlation Between Carlyle Secured and Brightsphere Investment
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Brightsphere Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Carlyle Secured and Brightsphere Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Brightsphere Investment Group, you can compare the effects of market volatilities on Carlyle Secured and Brightsphere Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Carlyle Secured with a short position of Brightsphere Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Brightsphere Investment.
Diversification Opportunities for Carlyle Secured and Brightsphere Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carlyle and Brightsphere is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Brightsphere Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightsphere Investment and Carlyle Secured is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Carlyle Secured Lending are associated (or correlated) with Brightsphere Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightsphere Investment has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Brightsphere Investment go up and down completely randomly.
Pair Corralation between Carlyle Secured and Brightsphere Investment
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.64 times more return on investment than Brightsphere Investment. However, Carlyle Secured Lending is 1.57 times less risky than Brightsphere Investment. It trades about 0.08 of its potential returns per unit of risk. Brightsphere Investment Group is currently generating about 0.03 per unit of risk. If you would invest 1,194 in Carlyle Secured Lending on October 20, 2024 and sell it today you would earn a total of 652.00 from holding Carlyle Secured Lending or generate 54.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Brightsphere Investment Group
Performance |
| Timeline |
| Carlyle Secured Lending |
| Brightsphere Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Carlyle Secured and Brightsphere Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Brightsphere Investment
The main advantage of trading using opposite Carlyle Secured and Brightsphere Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Brightsphere Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brightsphere Investment will offset losses from the drop in Brightsphere Investment's long position.| Carlyle Secured vs. Sixth Street Specialty | Carlyle Secured vs. Golub Capital BDC | Carlyle Secured vs. Fidus Investment Corp | Carlyle Secured vs. New Mountain Finance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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